General Liability Insurance for Business What Is Covered

General Liability Insurance for Business What Is Covered

General liability insurance is also known as commercial general liability insurance or business liability insurance. This kind of commercial insurance coverage helps to cover the costs related to property damage claims against the business, medical expenses if someone is hurt at the company, as well as advertising injury claims against the business. Simply put, it is needed to protect the business from all liability claims that it may come across.

Who Needs General Liability?

You will often find that general liability is often bundled with property insurance in a business owner policy. If you are a contractor or a small business owner, you need to have some kind of liability insurance coverage to protect your business and livelihood. So, when choosing your coverage, it is important to find the amount of coverage that matches your overall level of exposure to risk.

Is It Required By Law?

No, this type of insurance coverage is not required by law for a commercial business to have; however, failing to have this coverage may result in having to pay for all the expenses that are related to a claim being filed against your business. You could be responsible for all the medical bills and legal fees associated with a slip and fall, for example, on your property.

Is There a Deductible?

Most insurance coverage types do require a deductible and general liability is no exception. However, when obtaining your quote, you can choose the amount of your general liability deductible. It is going to be a fixed amount that you will have to pay out of pocket before the insurance coverage starts to pay out for the claim.

What Does It Cover?

General liability coverage only pays for third-party damages. In simpler terms, you are considered the first party and the third party is going to be the one that is filing the claim against you. So, general liability coverage won't cover your business property or any equipment against theft or damage.

It also won't cover for claims against you for professional neglect or mistakes you have made. For this, you would instead need to have professional liability insurance. General liability only covers claims against you by others for bodily injury or damage to their property.

The Benefits

When choosing general liability insurance for your commercial business, you are demonstrating responsibility and communicating that you are willing to accept responsibility if your business is liable for an accident on the job. It also shows that your business is established and you plan on being in business for the long haul.

Another advantage of general liability for your commercial business is how it can actually help you to increase your client contracts. It isn't required by law but it is often seen as a prerequisite for working with different clients.

It shows that you are not trying to avoid any possible claims and you practice and abide by higher safety standards than a business choosing not to have this kind of coverage.

For more information on your other insurance coverage options for your commercial business, don't hesitate to talk to the experts at Panorama today.

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